Percentage-of-Completion and Completed Contract Methods
Philbrick Company signed a three-year contract to provide sales training to the employees of Elliot Company. The contract price is $1,200 per employee and the estimated number of employees to be trained is 400. The expected number to be trained in each year and the expected training costs follow.
| Number of Employees |
Training Costs Incurred |
|
|---|---|---|
| 2016 | 125 | $60,000 |
| 2017 | 200 | 75,000 |
| 2018 | 75 | 40,000 |
| Total | 400 | $175,000 |
Required
For each year, compute the revenue, expense, and gross profit
reported assuming revenue is recognized using the following
method.
(Do not round until your final answers. Round your answers
to two decimal places.)
1. Percentage-of-completion method, where percentage-of-completion is determined by the number of employees trained.
| Revenue | Expense | Gross Profit | |
|---|---|---|---|
| 2016 | $Answer | $Answer | $Answer |
| 2017 | $Answer | $Answer | $Answer |
| 2018 | $Answer | $Answer | $Answer |
| Total | $Answer | $Answer | $Answer |
2. Percentage-of-completion method, where percentage-of-completion is determined by the costs incurred.
| Revenue | Expense | Gross Profit | |
|---|---|---|---|
| 2016 | $Answer | $Answer | $Answer |
| 2017 | $Answer | $Answer | $Answer |
| 2018 | $Answer | $Answer | $Answer |
| Total | $Answer | $Answer | $Answer |
3. Completed contract method.
| Revenue | Expense | Gross Profit | |
|---|---|---|---|
| 2016 | $Answer | $Answer | $Answer |
| 2017 | $Answer | $Answer | $Answer |
| 2018 | $Answer | $Answer | $Answer |
| Total | $Answer | $Answer | $Answer |
In: Accounting
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In: Accounting
The Village of Hawksbill issued $4,200,000 in 5 percent general obligation, tax-supported bonds on July 1, 2016, at 101. A fiscal agent is not used. Resources for principal and interest payments are to come from the General Fund. Interest payment dates are December 31 and June 30. The first of 20 annual principal payments is to be made June 30, 2017. Hawksbill has a calendar fiscal year.
Required:
a. Prepare journal entries to record the events above in
the debt service fund.
b. Prepare a Statement of Revenues, Expenditures,
and Changes in Fund Balance for the debt service fund for the year
ended December 31, 2016.
c. Prepare a Statement of Revenues, Expenditures,
and Changes in Fund Balance for the debt service fund for the year
ended December 31, 2017.
rev: 02_22_2019_QC_CS-159962
In: Accounting
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In: Accounting
Using the following statement of cash flows for Kat Kompany,
Complete the summary analysis of the statement of cash flows
Analyze cash flow from operating activities, cash inflows and cash outflows for 2016 and 2017.
Kat Kompany
Statement of Cash Flows
For the Years Ended December 31, 2017, 2016
2017 2016
Net income (loss) ($145) $245
Adjustments to reconcile net income
to net cash provided by (used for)
operating activities:
Depreciation 265 250
Changes in assets and liabilities:
Accounts receivable 395 (10)
Inventory 70 (45)
Accounts payable (230) 200
Net cash provided by operating activities $355 $640
Cash flows from investing activities:
Capital expenditures (400) (500)
Net cash used by investing activities ($400) ($500)
Cash flows from financing activities:
Proceeds from long-term debt 500 0
Repayments of long-term debt (400) 0
Payment of cash dividends 50) (50)
Net cash (used) provided by financing activities $50 ($50)
Net increase (decrease) in cash $5 $90
Cash at beginning of period 279 189
Cash at end of period $284 $279
Kat Kompany
Summary Analysis of Statement of Cash Flows
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2017 |
% |
2016 |
% |
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|
Inflows: |
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Total Inflows |
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Outflows: |
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Total Outflows |
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In: Accounting
Direct Materials Purchases Budget
Marino's Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for June 2016:
|
Units |
||||
|
12" Pizza |
16" Pizza |
|||
|
Budgeted production volume |
14,100 |
20,500 |
||
There are three direct materials used in producing the two types of pizza. The quantities of direct materials expected to be used for each pizza are as follows:
|
12" Pizza |
16" Pizza |
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Direct materials: |
|||||
|
Dough |
0.90 |
lb. per unit |
1.50 |
lbs. per unit |
|
|
Tomato |
0.60 |
1.00 |
|||
|
Cheese |
0.80 |
1.30 |
|||
In addition, Marino's has determined the following information about each material:
|
Dough |
Tomato |
Cheese |
||||
|
Estimated inventory, June 1, 2016 |
610 |
lbs. |
230 |
lbs. |
320 |
lbs. |
|
Desired inventory, June 30, 2016 |
640 |
lbs. |
220 |
lbs. |
350 |
lbs. |
|
Price per pound |
$1.3 |
$2.1 |
$3.3 |
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Prepare June's direct materials purchases budget for Marino's Frozen Pizza Inc. When required, enter unit prices to the nearest cent.
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Marino's Frozen Pizza Inc. |
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Direct Materials Purchases Budget |
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For the Month Ending June 30, 2016 |
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Dough |
Tomato |
Cheese |
Total |
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|
Units required for production: |
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12" pizza |
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16" pizza |
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Total |
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Total units to be purchased |
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|
Unit price |
x $ |
x $ |
x $ |
|
|
Total direct materials to be purchased |
$ |
$ |
$ |
$ |
In: Accounting
On December 31, 2016, Stiller Co., had 840 million common shares outstanding. During 2017, the following events occurred:
| January 21 | 24 million, $6, cumulative nonconvertible preferred shares were issued. |
| February 28 | 48 million common shares were purchased and retired. |
| April 30 | A 25% common stock dividend was issued. |
| August 31 | 96 million common shares were issued. |
No cash dividends were declared in 2017. For the year ended
December 31, 2017, Stiller Co. reported a net loss of $50 million,
including an after-tax loss of $500 million from discontinued
operations. Please make sure your final answer(s) are accurate to 2
decimal places.
(a) Determine Stiller Co.'s net loss per share for the year ended
December 31, 2017. Enter the loss as a negative number.
(b) Determine the per share amount of income or loss from continuing operations for the year ended December 31, 2017.
(c) Determine the per share amount of income or loss from
continuing operations for the year ended December 31, 2016 that
would be appropriate to appear on Stiller Co.'s 2017 and 2016
comparative income statements. Assume EPS were reported in 2016 as
$0.75, based on net income (no discontinued operations items) of
$600 million and a weighted-average number of common shares of 840
million.
In: Accounting
Some recent financial statements for Smolira Golf, Inc.,
follow.
| SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2015 and 2016 |
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| 2015 | 2016 | 2015 | 2016 | |||||||||||||
| Assets | Liabilities and Owners’ Equity | |||||||||||||||
| Current assets | Current liabilities | |||||||||||||||
| Cash | $ | 3,251 | $ | 3,407 | Accounts payable | $ | 2,143 | $ | 2,580 | |||||||
| Accounts receivable | 4,777 | 5,801 | Notes payable | 1,740 | 2,096 | |||||||||||
| Inventory | 12,438 | 13,802 | Other | 88 | 105 | |||||||||||
| Total | $ | 20,466 | $ | 23,010 | Total | $ | 3,971 | $ | 4,781 | |||||||
| Long-term debt | $ | 13,600 | $ | 16,360 | ||||||||||||
| Owners’ equity | ||||||||||||||||
| Common stock and paid-in surplus | $ | 37,000 | $ | 37,000 | ||||||||||||
| Fixed assets | Accumulated retained earnings | 15,644 | 38,966 | |||||||||||||
| Net plant and equipment | $ | 49,749 | $ | 74,097 | Total | $ | 52,644 | $ | 75,966 | |||||||
| Total assets | $ | 70,215 | $ | 97,107 | Total liabilities and owners’ equity | $ | 70,215 | $ | 97,107 | |||||||
| SMOLIRA GOLF, INC. 2016 Income Statement |
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| Sales | $ | 186,970 | |||
| Cost of goods sold | 126,003 | ||||
| Depreciation | 5,353 | ||||
| EBIT | $ | 55,614 | |||
| Interest paid | 1,450 | ||||
| Taxable income | $ | 54,164 | |||
| Taxes | 18,957 | ||||
| Net income | $ | 35,207 | |||
| Dividends | $ | 11,885 | |||
| Retained earnings | 23,322 | ||||
Construct the DuPont identity for Smolira Golf. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Enter the profit margin and return on equity as a percent.)
| Profit margin | % | |
| Total asset turnover | times | |
| Equity multiplier | times | |
| Return on equity | % | |
In: Finance
Assume that on December 31, 2016, Kimberly-Clark Corp. signs a 10-year, non-cancelable lease agreement to lease a storage building from Sheffield Storage Company. The following information pertains to this lease agreement: 1. The agreement requires equal rental payments of $66,999 beginning on December 31, 2016. 2. The fair value of the building on December 31, 2016 is $490,629. 3. The building has an estimated economic life of 12 years, a guaranteed residual value of $11,000, and an expected residual value of $8,100. Kimberly-Clark depreciates similar buildings on the straight-line method. 4. The lease is nonrenewable. At the termination of the lease, the building reverts to the lessor. 5. Kimberly-Clark’s incremental borrowing rate is 8% per year. The lessor’s implicit rate is not known by Kimberly-Clark. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Collapse question part (a) Partially correct answer. Your answer is partially correct. Try again. Prepare the journal entries on the lessee’s books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2016, 2017, and 2018. Kimberly-Clark’s fiscal year-end is December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places e.g. 5,275.)
In: Accounting
|
At the beginning of 2016, Better Corp.’s accounting records had the following general ledger accounts and balances. |
|
BETTER CORP. Accounting Equation |
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| Event | Assets | = | Liabilities | + | Stockholders’ Equity | Accounting
Titles for Retained Earnings |
||
| Cash | Land | Notes Payable |
Common Stock |
Retained Earnings |
||||
| Balance 1/1/2016 | 10,000 | 20,000 | 12,000 | 7,000 | 11,000 | |||
| Better Corp. completed the following transactions during 2016: |
| 1. | Purchased land for $5,000 cash. |
| 2. | Acquired $25,000 cash from the issue of common stock. |
| 3. | Received $75,000 cash for providing services to customers. |
| 4. | Paid cash operating expenses of $42,000. |
| 5. | Borrowed $10,000 cash from the bank. |
| 6. | Paid a $5,000 cash dividend to the stockholders. |
| 7. | Determined that the market value of the land purchased in event 1 is $35,000. |
| Required |
| a. |
Record the transactions in the appropriate general ledger accounts. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table. (Enter any decreases to account balances with a minus sign. Select "NA" if there is no effect on the "Accounts Titles for Retained Earnings".) |
| b. |
As of December 31, 2016, determine the total amount of assets, liabilities, and stockholders’ equity and present this information in the form of an accounting equation. |
| c. | What is the amount of total assets, liabilities, and stockholders’ equity as of January 1, 2017? |
In: Accounting